Securities Code: 8929

First Half Business Summary for Fiscal Year 2018 (28th period)

January 1 to June 30, 2018

To Our Shareholders

QCan you present a review of the first half of the year
and outlook for this period?

I’m pleased to announce that the Company was able tosteadily improve its performance in the first half of they e a r. I n p ro p e r t y s u c c e s s i o n a n d m a n a g e m e n t
consulting, we have strengthened our ties with financial
institutions in Tokyo including forming new partnerships,and this has seen a significant rise in the number ofcustomers and consultations. In business succession
consulting as well, we has enabled us to achieve notably
more successful business successions and M&A throughexpansion our collaboration with Nihon M&A Center Inc.
As for real estate transactions, a number of our measures
have produced successful results, including the openingof two new locations (Yotsuya 2-Chome and Aoyama
1-Chome) in the mainstay product, ADVANTAGE CLUB.
Subsequently, business results in this segment
surpassed the year on year figures, with a rise inoperating revenue to ¥7,693 million and an increase inoperating income to ¥719 million.
In the second half, we will make efforts to expand theproperty consulting business, while also continuing tostrengthen the aforementioned measures for property
succession and management consulting and businesssuccession consulting. We will also work to increase
revenue from real estate transactions by forming more
locations in the ADVANTAGE CLUB, and also actively
developing real estate consulting products based onoverseas real estate in the U.S. and ASEAN region.

President

Masazumi
HasumiOperating revenue

Operating income

7,693million yen (Up 9.9% year-on-year )719million yen (Up 2.6% year-on-year )First half of fiscal year

End of fiscal year

(unit: million yen)First half of fiscal year

End of fiscal year

17,5001,094

14,562
751

6,912

Fiscal Year 2016
(26th period)

17,000Fiscal Year 2017(27th period)

7,693

Fiscal Year 2018
(28th period)(unit: million yen)First half of fiscal year

End of fiscal year

701

66.74

424

Fiscal Year 2016
(26th period)

49.75

Fiscal Year 2018
(28th period)(unit: yen)

Fiscal Year 2016
(26th period)

work environment where a diverse employee base canutilize their skills. And in order to boost productivity, we aremaking our consulting know how more visible andinnovating the systems we use for our day-to-day work.

Q

Message to our shareholders
I would like to express my sincere appreciation to ourshareholders for their continual support. I would also liketo thank the many shareholders that attended theGeneral Meeting of Shareholders held this March. I am
pleased to report that this year’s attendance surpassed
that of last year’s meeting.
Thanks to your encouragement and support, we wereable to post a first-half income that exceeded theplanned figure, and subsequently realize a year-on-yearincrease in dividends from ¥11 to ¥14.
We have established our company as a comprehensive
property consulting firm with the reliable brand of“Aoyama Zaisan Networks Provides the Most
Comprehensive Asset Management Solutions.” Our goal
is to become a company that customers can approachwith peace of mind for consultations on a range ofproperty-related issues.
Aoyama Zaisan Networks will keep striving to maintain adividend payout ratio of 50% and continually increase
dividends by raising corporate value. We ask for thecontinued support of our shareholders going forward.

The Company provides shareholder incentives under the following conditions
to shareholders recorded in the shareholder register as of June 30.

Shareholders who hold 1,000 shares or more

Shareholders who hold 10,000 shares or more continuously for over 1 year

Select 1 from 10 products worth 3,000 yen

A meal certificate from UKAI CO., LTD. (20,000 yen)or Ukai special select beef (worth 20,000 yen)(forecast)

Dividends per shareFirst half of fiscal year

46.2%

Fiscal Year 2016
(26th period)
Fiscal Year 2018
(28th period)

Dividend payout ratio

45.0%
19.0

8.0

35.16

Fiscal Year 2017(27th period)

End of fiscal year

(unit: yen)

45.4%(forecast)21.0(forecast)

15.0

46.34

26.38

Fiscal Year 2017(27th period)

The expansion and exposure of various problems related
to property succession and management and businesssuccession has seen an increasing need for consulting inthese matters in recent years. We are committed tofurther fortifying our existing consulting business so that
we are able to meet these needs.
This includes working on setting up businesses in new
consulting fields, such as assisting in the smooth
succession of property in the arriving era of people living
until they are 100 years or older and the subsequentrising risk of dementia onset and a decline in an
individual’s decision making capacity, as well as dealing
with the unoccupied houses and vacant land that havebecome a social problem.
Additionally, in order to meet the growing need forproperty management, we will focus on adding productsthat will enable stakeholders to benefit from income andcapital gains by centering on a product mix comprisingoverseas real estate.
We are also pleased to announce that in the six months
since the end of last December, we have added 20
employees to our company. As the working age population
continues to decline, recruiting and training personnel has
become a key issue for companies. Our efforts topromptly train consultants include enhancing theireducation program, while also making more and better useof young employees and female personnel, and realizing a77.10(forecast)719

Can you present an overview of the future growthstrategies of the Company?

Shareholder Incentives

35.16yen

1,210(forecast)

14,420Net profit per share

Q<Sample images><Sample images>

Dividend
forecast

11.0
Fiscal Year 2017(27th period)

14.0
Fiscal Year 2018
(28th period)

Fiscal year ending in December 2018:35 yen2

Operating Revenue by Segment

The Group has a single segment, namely the Property Consulting Business.
Fluctuations in operating revenue by segment and forecasts for fiscal 2018
are provided below.

Initiatives Toward Sustainable GrowthRevenue from property consulting

Revenue from real estate transactions

Revenue from sublease, other revenue

Increase the number of customers and reinforce our internal structure

2,268million yen

4,879million yen

544million yen

Number of customers

First half of fiscal year

(Up 0.4% year-on-year

End of fiscal year)

First half of fiscal year

(unit: million yen)

(Up 17.4% year-on-year

End of fiscal year

(unit: million yen)First half of fiscal year

(Down 6.8% year-on-year

End of fiscal year)(forecast)(forecast)

3,928

10,1472,2684,786

1,536

4,879

4,155

204

168

(unit: million yen)

10.9%

148
1,148

1,130

589

584

9,503

3,123

Number of employees
184

12,0004,4402,260)

1,060

UP

136

1,669

1,398

(forecast)

19.4%

967

544

UP

847
735

Fiscal Year 2016
(26th period)

Fiscal Year 2017(27th period)

Fiscal Year 2018
(28th period)

Fiscal Year 2016
(26th period)

We have concluded several large projects such as
handling individual inheritance, acting as property agent
and facilitating corporate M&A. Subsequently, we wereable to achieve the planned revenue from property
consulting of ¥2,268 million (up 0.4% year-on-year).

Fiscal Year 2017(27th period)

Fiscal Year 2018
(28th period)

The opening of two new locations in theADVANTAGE CLUB resulted in revenue
from real estate transactions of ¥4,879million (up 17.4% year-on-year).

Fiscal Year 2016
(26th period)

Fiscal Year 2017(27th period)

Fiscal Year 2018
(28th period)

Revenue from sublease was ¥521 million (down6.3% year-on-year). Other revenue was ¥23 million(down 16.5% year-on-year), which was attributableto sales from the usage of our self-developed
property consulting system and other factors.

❶ Total assets 10,925❷ Interest-bearing
liabilities

6,353

Cash anddeposits

D/E ratio( 1.76times )Real estate
for sale

2,771

Otherliabilities

Investment
securities, etc.

Net assets

2,735

Other assets

1,693

Real estate
for sale

2,609

60

3,624

(Equity ratio28.7%)

End of fiscal year 201736,1784,099
D/E ratio( 1.00times )Other liabilities
Investment
securities, etc.

2,829
Other assets

End of fiscal year 2017

End of first half offiscal year 2018half we opened two new locations in the ADVANTAGE CLUB, which has accumulated aTopics Intotalthisof first
44 locations since it was launched in 2002.

ADVANTAGE CLUB
Yotsuya 2-Chome

Total assets was ¥10,925 million, due to anincrease in cash and deposits and a decrease of¥1,662 million compared to the end of theprevious period from the sale of real estate forsale.

■ Access
3-minute walk from Aoyama-itchome
Station on the Tokyo Metro HanzomonLine, Ginza Line, and Toei Oedo Line.

❷ Interest-bearing liabilities■ ScaleTen above-ground floors andone basement floor
Total floor space 1,133.56 m2■ Access
3-minute walk from Yotsuya Stationon the JR Chuo-Sobu Line, and theTokyo Metro Marunouchi Line andNamboku Line.

❸ Net assets

Total amount

Total amount

2,240million yen

1,480million yen❶ Total assets

Total assets 12,587

5,386

End of fiscal year 2016

ADVANTAGE CLUB
Aoyama 1-Chome

Consolidated Balance Sheet (Summary) (unit: million yen)Interest-bearing
liabilities

End of fiscal year 2015

Results of ADVANTAGE CLUBConsolidated Financial Highlights

Cash anddeposits

End of fiscal year 2014

It is imperative that we bolster our teamo f c o n s u l t a n t s t o m e e t t h e e v e rincreasing need for consulting in theareas of property succession andmanagement and business succession.
Therefore, we are focusing on securing
outstanding personnel and improving
our consulting capabilities overall.
We are also implementing a number ofmeasures to raise productivity, including
developing a proposal system forcustomers (property consulting system),innovating our sales support and work
administration systems andincorporating other technologies, as well
as dividing tasks among employees andreviewing work processes.

2,727❸ Net assets

4,098ratio( Equity37.4% )1,856
End of first half of fiscal year 2018

Interest-bearing liabilities was ¥4,099 million,
attributable to a decrease of ¥2,254 million
compared to the end of the previous period dueto the repayment of short-term loans payable.
Net assets grew by ¥474 million from the end of
the previous period to reach ¥4,098 million,
attributable to a rise in the valuation difference on
available-for-sale securities and increase inretained earnings.

■ ScaleNine above-ground floors
Total floor space 1,272.93 m2

4

Network
Our growing global network

List of Nationwide Network (as of August 1, 2018)

We have established a nationwide network in Japan that includes leading tax accounting firms and accounting offices.
Through this network, we provide consulting services to customers across Japan. As part of our efforts to expand
internationally, we have established overseas subsidiaries in the United States and Singapore. Going forward, we willcontinue working with top overseas partners and enhance our network both at home and abroad.

Hokkaido, Tohoku

Tokai, Hokuriku■ Zaisan Networks Fukushima Co., Ltd. (Aozora Tax Corporation)■ Zaisan Consultants Kanazawa Co., Ltd. (Hatake & Starship Tax Corporation)■ ‌Aoyama Zaisan Networks Hokkaido Support■ Zaisan Networks Shizuoka Co., Ltd. (Iwasaki Tax Corporation)(IKEWAKI TAX, ACCOUNTING & CONSULTANTS GROUP)■ Aoyama Zaisan Networks Aomori Support (Konda Accounting Office)

Tokai and Hokuriku

Japan56bases

Chugoku and Shikoku

9 bases

4 bases■ Zaisan Networks Nagoya Support (Meinan Consulting Network)■ Aoyama Zaisan Networks Fukui Support (Uesaka Consulting Firm)■ ‌Aoyama Zaisan Networks Sendai Support (MISAWA BUSINESS MANAGEMENT INC.)

Aim Nakano Accounting Co., Ltd.

■ ‌Aoyama Zaisan Networks Yamagata Support (Yutaka Licensed Tax Accountant’s Corp)

Meito Asset Consulting, Co., Ltd.

Nihon Shisan Soken Co., Ltd. Sapporo

Nihon Shisan Soken Co., Ltd. Nagoya

MISAWA BUSINESS MANAGEMENT INC

MMPC Consultants Corporation

Zaisan Networks Fukushima Co., Ltd.

Kimura Business Succession Brain Co., Ltd.

(Duplicate bases are excluded.)

Hokkaido and Tohoku
Kanto and Koshinetsu
Kyushu and Okinawa

Expanding
network to Asiaand NorthAmerica

5 bases

Kinki

622basesbases

10 basesKanto, Koshinetsu

Kinki■ Nihon Shisan Souken Co., Ltd.

■ Zaisan Networks Kyoto Co., Ltd. (SHINKEIEI SERVICE SHIMIZU Tax Co.)■ Zaisan Networks Tochigi Co., Ltd. (Tajima Accounting Office)■ Zaisan Networks Osaka Co., Ltd. (Nihonkeiei Will Tax Accountant Corporation)■ Zaisan Networks Motegi Co., Ltd. (MOTEGI tax consultant office)■ Zaisan Networks Hyogo Co., Ltd. (Nihonkeiei Will Tax Accountant Corporation)■ Aoyama Zaisan Networks Saitama Co., Ltd. (CWM Research Institute)■ Seki Soken Zaisan Partners Co., Ltd (AZ TAX Tax Corporation)■ Kagayaki Zaisan Networks Co., Ltd. (Kagayaki Tax Corporation)■ Aoyama Zaisan Networks Wakayama Support (Nishioka Accounting Office)■ Zaisan Networks Nagano Co., Ltd. (Mochizuki Tax Corporation)■ Aoyama Zaisan Networks Kyoto Nijo Support (HIROSE LICENSED TAX ACCOUNTANT)■ Aoyama Zaisan Networks Ibaraki Support (Masuyama Accounting Office)■ Aoyama Zaisan Networks Mie Support (Midland Management Group Mie)

■ Aoyama Zaisan Networks Kanto Chuo Support (MMG Tax Corporation)

SMO Corporation■ Aoyama Zaisan Networks Denenchofu Support (Saito Tax Corporation)

Shibata Business Consulting Co., Ltd.

■ Aoyama Zaisan Networks Yokohama Support (YAMADA SYNTHETIC OFFICE)‌Ueda Certified Public Accountant Licensed Tax Accountant Office.

Kujirai Tax Corporation

CREAS Corporate Advisers Co., Ltd.

Kei Yo Research InstituteZeimu Sogo Tax Corporation

Chugoku, Shikoku

Nihon Mirai Accounting & Tax Co.
Nakamura Certified Public Tax Accountants OfficeHong Kong investment
consulting partner

Aoyama Zaisan Networks USA, Inc.
(United States)

CREAS Corporate Advisers Co., Ltd.

Major Indonesianindustrial conglomerate

Aoyama Wealth Management Pte. Ltd.
(Singapore)

PT. Aoyama Zaisan Networks Indonesia(Indonesia)■ Midori Zaisan Consultants Co., Ltd. (Midori Tax Corporation)■ Aoyama Zaisan Networks Shimane Support (Chikashige Tax Office)eclat Consulting

Nonaka Keiei Corporation

Top Accounting Firm & coPropertymanagement partner■ Zaisan Consultants Tokushima Co., Ltd. (M.A.S. AGENT GROUP)

Ai Partners Tax Corporation
Oyama accounting Co., Ltd
Masatoshi Yoshikawa Certified Tax Accountant Office

Real estate partner

Koyama Certified Public Tax Accountants Office

Kyushu, Okinawa■ Zaisan Networks Fukuoka Co., Ltd. (SHINOHARA CPA OFFICE)■ Zaisan Networks Okinawa Co., Ltd. (PS Accounting Office)■ Aoyama Zaisan Networks Nagasaki Support (Chuo Sogo Accounting Office)■ Aoyama Zaisan Networks Saga Support (MOROI Accounting Firm)
IDEA Research Institute Consulting Co., Ltd.

Overseas partners
Overseas subsidiaries■ Aoyama Zaisan Networks’ Nationwide Network
5

NSSTPS Business Model Association * NSSTPS is the abbreviation for Nippon Shisan Soken Total Planning System.
6

Corporate Data (as of June 30, 2018)

Executives (from August 1, 2018)

Name of Company

Aoyama Zaisan Networks Company, Limited

Head Office

3F Aoyama Tower Place, 8-4-14
Akasaka, Minato-ku, Tokyo 107-0052
Tel. +81-6439-5800

IncorporatedSeptember 17, 1991

Capital stock

1,088.93 million yen

Business line

Individual property consulting,business succession consulting andreal estate solutions consulting

Number of employees(Group)

204

Consolidated
subsidiaries

5 companies including Aoyama
Estate Co., Ltd., Nihon Shisan Soken
Co., Ltd. and Proggest Co., Ltd.

President
Director, Managing Executive Officer
Director, Managing Executive Officer
Director, Executive Officer
Director, Executive Officer
Director, Executive Officer
Director, Executive Officer
Outside Director
Outside Director
Outside Director
Outside Auditor (standing)
AuditorOutside Auditor

Stock Overview (as of June 30, 2018)

Notes for Shareholder

Number of shares in issue
Number of shareholders
Major Shareholders (Top 10)
Name

Masazumi Hasumi

Masazumi Hasumi
Masayuki Yagi
Takeshi Matsuura
Seido Nakatani
Shinji Shimane
Takaomi Ogawa
Hideo Matsuda
Haruo Shimada
Keiji WatanabeMichihiro Nagasaka
Hiroyuki Fujita
Hisao Nakatsuka
Hiroaki Rokugawa

11,963,500
4,769
Shares held Shareholding ratio

1,216,600

10.66

Yasuo Takano

665,800

5.83

The Master Trust Bank of Japan, Ltd. (trust account)

624,900

5.48

Japan Trustee Services Bank, Ltd. (trust account)

498,7004.37

Trust & Custody Services Bank, Ltd. (pension trust account)

488,600

4.28

Trust & Custody Services Bank, Ltd. (securities investment trust account)

171,500

1.50

Nihon M&A Center Inc.

150,000

1.31

NORTHERN TRUST CO. (AVFC) RENORTHERN TRUST (GUERNSEY) LIMITEDRE GGDP RE: AIF CLIENTS 15.315
PERCENT NON TREATY ACCOUNT

125,000

1.10

Mutsumi Shimada

120,000

1.05

Taisei Co., Ltd.

110,000

0.96(For reference)
Shareholding ratio is calculated by deducting treasury stock (550,078 shares), and treasury
stock is excluded from the above list of principal shareholders.

Fiscal year
Base date for the determinationof shareholders with year-end
dividend entitlements
Base date for the determinationof shareholders with interim
dividend entitlements

January 1 to December 31
December 31
June 30

General meeting of shareholders

in March

Administrator of the shareholder
registry/Account management
institution for special account

Mitsubishi UFJ Trust and Banking Corporation

Contact

Mitsubishi UFJ Trust and Banking Corporation,
Stock Transfer Agency Department
1-1, Nikko-cho, Fuchu-shi, Tokyo
Tel. 0120-232-711(toll-free, Japan only)
Mailing address: P.O. Box 29, Shin-Tokyo
Post Office 137-8081
Mitsubishi UFJ Trust and Banking Corporation,
Stock Transfer Agency Department

Stock exchange listings

TSE Second Section

Public announcements

To be announced on the Company’s website(For reference)
1. ‌Shareholders’ address changes, repurchase requests, and such other procedures, as a rule, arefilled with the account-administrating institutions where shareholders have their accounts(securities companies, etc). Shareholders are requested to contact their account holding
securities companies, etc., for information. Shareholders are reminded that application filings
cannot be made with the administrator of shareholder registry (Mitsubishi UFJ Trust and Banking
Corporation).
2. ‌Dividends hitherto uncollected by shareholders are paid by Mitsubishi UFJ Trust and Banking
Corporation, Head Office Branch.